India's 1st IRDAI Approved Insurance Web Aggregator

Protect your family with Rs. 5,000/- per month | Suraksha Kavach

Last Updated: May 24, 2018 | 4,409 Views
Hello everyone, so here is another really important video which you should understand. Please share your thoughts on this in the comments section.

Also, do share topics on which you would want videos made and we will take it up.

So, which are the insurance plans that one MUST have? Let me try to explain this with reasons. Let me know if you agree!

Insurance is supposed to provide a good financial protection cover for your family and you should go about ensuring that your family has that. And believe me you don’t need a mega budget for this.

Suppose you are an earning member with 3 more people dependent on your income. And you have an income of Rs. 5 lakhs every year. As most of us in the middle class, let us assume that we are not sitting on huge savings. Let us assume you have a budget of Rs. 5,000 per month which you can save and invest. 

1st risk to be covered - What happens to your family in case you die?

Problem - The income that you provided to your family stops suddenly and your family is left to fend for their own. Bad risk - needs to be covered.

Solution - Take a rock solid term insurance cover. Get a cover of upto 20 times your annual income. Suppose you are 35 years old, a 1 crore cover will cost you Rs. 1,100 per month. Your family get Rs. 1 crore which we assume will be sufficient in the medium term at least.

Get the Best Term Insurance Plan
Compare Now

2nd risk to be covered - What happens if you suddenly fall ill or meet with an accident and need to be hospitalised?

Problem - Unless you have a couple of lakhs in the bank, a visit to a decent hospital will set you back financially. In fact, you may have to even stop paying your term insurance premiums. So you will literally be back to square one. 

Solution - So get a good health insurance cover. You can get a good health insurance plan for all 4 members of Rs. 3 lakhs for Rs. 9,600. So that’s Rs. 800 per month.

So till now, you have a 1 crore term plan and a 3 lakhs health plan for your family with a spend of Rs. 1,900 in a month.

Get the Best Health Insurance Plan
Compare Now

3rd risk to be covered - What happens in case of a serious illness or a serious accident?

Problem - Your health insurance plan alone won’t suffice. You may even have to leave your job or take a long time off. Income stops and expenditure increased dramatically and you may have to even stop paying your term insurance premiums - making the future even worse.

Solution - Take a Critical Illness Rider with your term insurance plan. And take an Accidental Death & Dismemberment Rider. Or take stand alone Critical Illness Plan & Personal Accident Plan.To take both these riders will cost you around Rs. 800 per month.

These 3 put together pretty much creates a financial Suraksha Kavach for your family. And you have spent is Rs. 2,700 per month.

You still have Rs. 2,300 from your monthly savings of Rs. 5,000 to invest and grow your money. You don’t have to worry about not being in a position to stop investing because of any emergency situation. If you can save more, you can invest more and live much more peacefully. Start an SIP or invest the new age low cost ULIPs which are very tax efficient too.

Have any questions or suggestions on this… please do comment and we will be happy to discuss.

Leave a Comment

Important: Insurance is the subject matter of solicitation | © 2009-2023